FxWirePro: NZD/USD erases losses, edges higher from 3-week lows at 0.6565, bias bearish

NZD/USD chart - Trading View 

NZD/USD edges higher from 3-week lows at 0.6565, trades largely unchanged around 0.66 handle at 06:45 GMT.

The pair has held support at cloud base, bias remains bearish, breach at cloud base to plummet prices further.

Technical indicators are biased lower. Stochs and RSI are sharply lower. MACD shows a bearish crossover on signal line.

Disappointing China's inflation data keeps the antipodeans supressed. Continued U.S. dollar strength add to bearish pressures.

US-China trade uncertainty and rising odds of a smaller Fed rate cut after strong growth in Nonfarm Payrolls in June keep scope for further weakness.

Focus now on Powell's semi-annual testimony and the FOMC minutes that follow for further impetus. 

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-USD-holds-marginal-gains-recovery-capped-below-55-EMA-bias-bearish-1557863) has hit TP1.

Recommendation: Watch out for breach below cloud for further weakness.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.